Modified Adjusted Gross Income (MAGI) Law and Legal Definition
Modified adjusted gross income (MAGI) is the adjusted gross income modified by various adjustments. Adjusted gross income (AGI) is the amount in hand as income after deducting all allowable adjustments from the total income, such as IRA contributions, alimony paid, moving expenses and Keogh account contributions. Adjusted gross income is used as a basis for various calculations, including determining the limitations on itemized deductions. Modified Adjusted Gross Income is used to determine how much can be contributed to certain personal retirement programs
